MONEY & BANKING


Moneylife Digital Team 20 June 2019
The Insolvency and Bankruptcy Code (IBC) has made good progress by resolving the cases of about 94 companies with stressed liability of Rs1.7 lakh crore as of March 2019. The recovery amounted to Rs70,000 crore, translating into a haircut of 58% for financial and operational creditors and...

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One sentence, in an article published in LiveMint, indicates why there are no suitors for Jet Airways, leading to bankers, mainly unaccountable public sector banks (PSBs), finally, opting for bankruptcy proceedings on 17th June. It says, “A senior banker involved in the discussions said one...

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Moneylife Digital Team 17 June 2019
UCO Bank has declared industrialist and Page3 regular Yashovardhan (Yash) Birla as a wilful defaulter after Birla Surya Ltd failed to repay loans of Rs67.65 crore. Mr Birla is chairman of the Yash Birla Group. This is a rare incident where a lender has published a photo of a well-known...

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Earlier this month, the monetary policy breathed a fresh air and for once customers felt that some comfort existed for them too. Post-liberalisation, banks went on investing in technology and realising the costs of such investments through various types of charges imposed on the...

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Last week, when Parvez Ahmad, chairman and managing director (CMD) of Jammu & Kashmir Bank (J&K Bank) was sacked, there was a general air of jubilation in the state as he was allegedly involved in various financial irregularities in loan dispersals, among other issues. While activists are...

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At the Nikkei Future of Asia Conference in Japan last month, the Malaysian prime minister Dr Mahathir Mohamad floated the idea of creating a gold-backed common trading currency for all of East Asia. He opined that “if we have a common currency for East Asia, a common trading currency that...

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Krishna Nair 12 June 2019
Financial year 2018-19 marked a rather unsettling year for Yes Bank even more so for its board of directors.   Ever since Rana Kapoor was not permitted by the RBI to continue to be on the Board of Directors of Yes Bank, the bank has suffered an exodus of directors. Only two members of...

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A British court on Wednesday extended, till June 27, the judicial custody of Nirav Modi, while rejecting his bail plea as it suspected that he could "interfere" with witnesses.   The Westminster Magistrates' Court ordered the Metropolitan Police to put him under its custody till the...

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Quaid Najmi (IANS) 12 June 2019
The beleaguered public sector Punjab National Bank (PNB) has admitted to 1,142 big and small defaulters all over India who have defaulted a stupendous Rs 25,090.3 crore.   Of these 1,142, the PNB has so far initiated recovery proceedings by filing suits against 1,108 defaulters to...

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Dewan Housing Finance Ltd (DHFL) on Tuesday paid its interest dues worth Rs 961 crore on non-convertible debentures (NCDs), exactly a week after it delayed its interest payment.   The delay in interest payment had raised concerns of a liquidity crisis among the non-banking financial...

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US credit rating agency Moody's on Tuesday placed Yes Bank's ratings under review for downgrade on the back of ongoing liquidity pressures which are expected to negatively impact the lender's credit profile.   In line with their assessment, Moody's Investors Service put Yes Bank's...

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Around 73 per cent households in the country are facing the heat on the economic front as their expenses have increased at a greater pace than their income in the last 12 months, according to a recent survey by Local Circles.   Around 40 per cent of the people surveyed across the...

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ANJANA DAS (IANS) 10 June 2019
Withdrawing a cumulative Rs 10 lakh a year can attract 3-5 per cent tax if a proposal going around in the Finance Ministry takes shape in the Budget to track high value cash deals and make digital payments mandatory.   In its push towards a digital economy, the central...

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The National Company Law Appellate Tribunal (NCLAT) on Monday clarified that the lenders of Jaypee Infratech (JIL) can vote against the NBCC's bid to acquire the insolvent real estate company.   The Delhi-based appellate also directed for the completion of the ongoing voting process,...

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Moody's Investors Service has termed the RBI's revised framework for the resolution of stressed assets a credit positive move while suggesting the country's insolvency code mechanism to speed up resolution process.   It has also given thumbs up to the RBI's move to extend the circular...

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Moneylife Digital Team 08 June 2019
Over the past one year, the corporate world has been rocked by bankruptcies and huge liquidity crisis. This includes one of the country’s largest airline suspending operations, Rs10 lakh crore of bad loans, the disintegration of the Infrastructure Leasing & Financial Services (IL&FS) group...

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The Reserve Bank on Friday issued a revised framework for resolution of stressed assets by banks after the Supreme Court in April struck down the apex bank's earlier circular which mandated that the resolution process begin immediately on the day after default of loans worth over Rs 2,000...

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Moneylife Digital Team 07 June 2019
Liquidity problems at Dewan Housing Finance Corporation Ltd (DHFL) and its reported failure this week to pay coupons highlight the funding challenges faced by India's non-banking finance sector, Fitch Ratings says.   "Issues in the non-banking financial companies (NBFCs) were already...

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HDFC Bank has dropped the firm of S.R. Batliboi from its panel of auditors following the Reserve Bank of India's (RBI) refusal to approve the appointment and has, instead, appointed MSKA and Associates as their Statutory Auditors, the bank said on Friday.   HDFC Bank said in a stock...

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For the first time ever, a government investigator has had the courage to call out to the Reserve Bank of India’s (RBI) weak supervision. The Serious Frauds Investigation Office (SFIO) has blamed RBI for its failure to detect what turned into a massive systemic scandal at Infrastructure...

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